Smith Micro Software Loss Wider To Estimate; To Cut 20% Of Workforce Quick Facts

(RTTNews) - Smith Micro Software Inc (SMSI), a provider of wireless and mobility solutions, Thursday reported first-quarter net loss of $5.2 million or $0.14 per share compared with a loss of $6.2 million or $0.17 per share last year.

Excluding items, adjusted loss for the quarter was $2.7 million or $0.07 per share compared with a loss of $3 million or $0.08 per share a year ago.

Revenues for the quarter were lower by 27% at $8.4 million compared with $11.6 million in the prior year, due to seasonality in the company's Productivity and Graphics business.

Analysts polled by Thomson Reuters estimated a loss of $0.05 per share on revenues of $9.8 million for the quarter. Analysts' estimates typically exclude special items.

The company said a significant potential deal didn't materialize and that uncertainty regarding the timing of future revenues have resulted in the need for additional cost cutting measures.

As a result, the company is taking immediate steps to further lower its cost structure by about $2 million per quarter. The Board has approved a restructuring plan that will streamline its organization and reduce overall headcount by about 20%.

The restructuring plan will result in one-time severance and other special charges of about $1.6 million to $2 million, which will be reported in the second quarter, the company said.